Congress Can Support and Protect the Employer-Provided Health Insurance System
Two key pillars work to support the workplace coverage: the tax exclusion for job-based insurance and the Employee Retirement Income Security Act (ERISA).
The current tax treatment of employer-provided health plans has created a reliable, efficient system that gives employers the ability to offer responsive coverage. Any changes to this policy would upend the foundational way health care is delivered while increasing taxes on American businesses and hardworking Americans.
The system was strengthened further in 1974 when Congress passed ERISA, which gave employers the framework to offer and maintain uniform, robust health plans. Rather than having to comply with a 50-state patchwork of rules and regulations, self-insured employers are protected against inconsistent or contradictory state laws through the ERISA preemption clause.
In 2024, employers celebrated 50 years since ERISA became law. Efforts to erode or constrain ERISA’s preemption will threaten employers’ ability to provide high-quality and accessible coverage.
Congress must continue to protect the tax exclusion and strengthen ERISA preemption, both of which work to keep health coverage robust, affordable and convenient for Americans.
Strengthening Employer-Provided Coverage: The Reliable Solution
Employer-provided coverage provides high-quality coverage for 180 million Americans and their families. The flexibility of workplace coverage allows companies to tailor insurance benefits and coverage to meet the needs of their specific workforce. today and in the years to come.
